ALTERNATIVE APPROACHES TO FINANCING LIFELONG LEARNING

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1 ALTERNATIVE APPROACHES TO FINANCING LIFELONG LEARNING COUNTRY REPORT NORWAY 1998 Norway has granted the OECD permission to include this document on the OECD Internet Home Page. The views expressed in the document are those of the authors and not necessarily those of Norway, the OECD or its Member countries. The copyright conditions governing access to information on the OECD Home Page are provided at

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3 PREFACE Lifelong learning was the main theme of the OECD s meeting of education ministers in The resulting recommendations for a greater emphasis on lifelong learning have since influenced co-operation within the field of education in the OECD countries and are being followed up through a variety of studies and projects. Naturally, the OECD places significant emphasis on the financing of the expanded activities within lifelong learning. This report is the Norwegian contribution to the study on "Alternative Approaches to Financing Lifelong Learning" which highlights the main issues concerning financing and the use of resources. The following ten countries contributed national reports to this study: Austria, the Czech Republic, Finland, Hungary, Italy, Korea, Japan, the Netherlands, Sweden and Norway. The overall study will be considered by the OECD s Education Committee in late The study will be published by the OECD in printed form and also placed on the Internet. The national reports will be published in each country and the OECD will simultaneously make them available on the Internet. The Norwegian report has been prepared for the OECD study according to guidelines issued by the OECD. The report has not been further adapted for publication. Even if this makes for a somewhat less readerfriendly and accessible report, we believe that the material contained in it will be a valuable contribution to the ongoing debate on these central issues in educational policy. November Department for Adult Education and Educational Funding, Ministry of Education, Research and Church Affairs. 3

4 TABLE OF CONTENTS CHAPTER 1: INTRODUCTION - THE COUNTRY SETTING POLITICAL CONTEXT ECONOMIC CONTEXT SOCIAL AND CULTURAL CONTEXT... 9 CHAPTER 2: ESTIMATING THE PUBLIC COSTS OF IMPLEMENTING LIFELONG LEARNING THE NORWEGIAN EDUCATION SYSTEM CURRENT ENROLMENT PATTERNS ESTIMATES OF PARTICIPATION GAPS ESTIMATES OF THE COSTS OF CLOSING THE PARTICIPATION GAP NON-PUBLIC COSTS DYNAMIC EVOLUTION OF THE COSTS OF LIFELONG LEARNING CHARACTERISATION OF LIFELONG LEARNING NEEDS BY WORKER TYPE CHAPTER 3: RAISING THE RETURN TO LIFELONG LEARNING THE INVESTMENT IN LIFELONG LEARNING COSTS AND BENEFITS OF LIFELONG LEARNING INCREASING THE BENEFITS OF LIFELONG LEARNING FOR ADULTS CHAPTER 4: MOBILISING RESOURCES FOR LIFELONG LEARNING SYSTEMIC APPROACH SECTOR ANALYSIS CHAPTER 5: CASE STUDIES OF GOOD PRACTICE INTRODUCTION PRESENTATION OF A STUDY PROGRAMME OFFERED TO EMPLOYEES IN NORWAY S SOCIAL SECURITY ADMINISTRATION THE SCANA CLASS NATIONAL LESSONS FROM THE CASE STUDIES CHAPTER 6: CONCLUSIONS

5 CHAPTER 1: INTRODUCTION - THE COUNTRY SETTING 1.1 POLITICAL CONTEXT There is no single, comprehensive definition of lifelong learning in Norway. The concept has expanded to embrace the complete life span including basic education for children and young people. 2. The current debate is focusing on the need for competence in the workplace and among the adult population. 3. The concept lifelong learning appears in political and social debates on competence and training in various contexts and across policy areas including: The awareness that knowledge and skills must continually be updated lies behind the expansion and reforms in the initial education and training system, whether at primary, secondary or higher level. The Norwegian government has opted for an active labour market policy, ALMP. The active labour market policy implies to improve the competence and job possibilities of the unemployed with low educational attainment and low skills, to enhance the possibilities for job placements, for enterprises to recruit skilled workers, and to increase the accumulated competence of society as a whole, as well as future production and income potentials. Increasing emphasis is being placed on the importance of competence for economic activity and employment. Great attention is paid to the needs of the workplace. There is a growing awareness that learning occurs in different contexts and life situations. The conditions under which training occurs and the systems for documentation and assessment of non-formal learning are important questions in the Norwegian debate on education and training. 4. In June this year, the government submitted to the Storting (the Norwegian National Assembly) a White Paper on adult education and training. The White Paper ( The Competence Reform ) will be discussed in the Storting during the autumn session. The White Paper builds on, among other things, a report ( New competence ) that was submitted to the Ministry of Education, Research and Church Affairs in October 1997 by a committee appointed by Royal Decree some 12 months earlier. The report was sent out for public debate, and the Ministry received wide and articulated response from the parties involved in questions concerning lifelong learning in Norway. There are references to the two documents in the following chapters. 5

6 Education and training is high on the Norwegian political agenda. In recent years, major, farreaching reforms have been implemented with comprehensive support from politicians and society. 6. Increased unemployment, also among young people, contributed to a significant expansion of capacity at the levels of upper secondary and higher education. The extended capacity and its financial implications were important reasons for the major structural and curricular reforms in initial education and training from 1990 to the present. 7. The general process of change in society and the recent reforms in the educational system revealed the need for a policy document defining aims, principles and basic values that all education should be based on. A Core Curriculum (1993) was therefore developed for primary, secondary and adult education, including vocational education. The Core Curriculum strongly underlines the importance of initial education and training in providing a basis for lifelong learning. 8. The reform of upper secondary education and training ( Reform 94 ) derives among other things from the recognition by the social partners of the need to strengthen vocational training. The main model of vocational education consists of two years at school + two years of apprenticeship, the so-called 2+ model. During the two years with the enterprise the apprentice will receive the equivalent of one year of training and take part in the productive work the equivalent for one year. In practice the training and the productive work are mixed throughout the two years. (The apprentice is engaged by the enterprise from the first day and is paid an equivalent to one year s salary over two years. The salary is stipulated in the wage agreement of the trade and is about half the amount of what skilled workers get.) The aim is that around 40 per cent of each annual cohort should complete upper secondary education with a trade or journeyman s certificate after the final period of productive work in the workplace. 9. The principal objective of the reform has been to ensure that all young people receive education or vocational training which provides a basis for further study and work. Therefore a statutory right to three years of full-time upper secondary education was introduced for all year-olds, leading to either university entrance qualifications, a trade or journeyman s certificate or other vocational qualifications. 10. There is basic agreement that initial education and training at primary and secondary level should be the same throughout the country and that funding is the responsibility of the public authorities. This principle also applies to apprenticeships in that enterprises taking on apprentice receive public support, corresponding to the cost of a place at school. 11. Care was also taken that the reforms in initial education and training at primary and secondary level should take into account the educational needs of adults, including measures of organising and adapting the education and training to meet their particular needs. Therefore the use of information technology was included in all curricula, distance education was emphasised and the provisions and arrangements for external candidates were included at all levels. This is important now that the government is focusing more strongly on the educational needs of the adult population. 12. An important aspect of adult education in Norway is that the public education institutions also are responsible for providing initial education and training for adults at primary and secondary level; no institutions have been established specifically for this purpose. 13. Furthermore, private and independent institutions, organisations and the working community provide initial education and training (as a supplement to the public provision), different types of vocational training and general adult education. The public authorities support some of this education, but the education is mostly financed by the participants themselves, or the employers. 6

7 The publicly appointed committee which has reported on the basis for a reform of adult education and continuing education and training within the framework of lifelong learning ( New Competence ) has mainly recommended building on an existing cross-sector approach. For priorities in the White Paper ( The Competence Reform ), see Chapter There seems to be broad agreement about the need for greater emphasis on competence building in society. The social partners 16. In Norway, there is a long history of obligated co-operation between the authorities and the social partners. 17. The social partners are heavily involved in upper secondary education and training, especially in creating apprenticeship places. 18. Through the system of national agreements, the social partners have become more heavily involved in training and competence development. This concerns the private, public and local authority sectors. Since 1996 especially, training (leave and funding) has been included as a central element in collective wage negotiations. 19. The employers and various employee organisations participated in the public-appointed committee, which made its proposals in autumn 1997 ( New Competence ). 20. As part of the main wage negotiations this spring The Confederation of Trade Unions (LO) and The Norwegian Confederation of Business and Industry (NHO), agreed on the basic and principal questions and demands for the Government s involvement in a reform on Adult Education. Voluntary organisations 21. Norway has a well-developed network of voluntary organisations representing a broad spectrum of social and business interests in all fields of society. 22. There is a long tradition in Norway of broad public involvement in adult education and training through the voluntary organisations. Many of these organisations are behind the development of study associations, and they have greatly contributed to the standing of the folk high schools and the independent distance education institutions. A certain amount of official support is provided to the study associations training activities, which cater for an annual course participants. 23. In a broad sense, the organisations promote lifelong learning through providing training through developing teaching methods suitable for adult participants, and through encouraging training and recruiting participants. 7

8 1.2 ECONOMIC CONTEXT The Norwegian economy is strong. Especially within the last 3-4 years, there has been significant growth in employment and a reduction in unemployment. 25. Among the population aged in 1997 around 79 per cent were in the work force. 76 per cent were employed. In the first half of 1998 the mean number of registered unemployed was 58,560 The labour market is currently very tight and there is a real shortage of skilled workers in several industries, especially in manufacturing, construction work and the service industries, including the health sector. 26. The employment situation, together with the rapid change towards a more knowledge-intensive production of goods and services, has greatly contributed to the increased attention being paid to competence needs in the labour force. 27. The employers, the employees and the authorities have generally identified similar competence needs. Their preferences for and assessment of specific measures will not necessarily be so compatible. 28. There is a strong tradition in Norway of equality in education and training and equal opportunities for all. The authorities are therefore very attentive to the fact that continuing education and training in today s working community may greatly reduce existing inequalities in access to education and training. 29. The tight labour market increases the cost of allowing workers to absent themselves from work to undergo training. This indicates the need for a more flexible organisation of education and training. 30. At the same time, the tight labour market provides greater opportunities for groups which previously faced problems entering the workforce, such as immigrants, refugees, young people without work experience etc Generally, there is a significant need for adjustment in the working community, even if there are considerable differences between industries and sectors. The social partners stress that there are still many enterprises which do not seem to have to have a sufficiently clear idea as to what this development means for future competence needs. 32. The social partners are thus committed to getting enterprises/organisations to use the system of national agreements which has provisions concerning competence mapping and responsibility for measures. 33. The question of leave, wages etc. for continuing education and training was also a topical theme in the principal wage agreements being negotiated this spring The public sector on its own will hardly be able to bear the projected future costs of funding education and training for adults. 8

9 35. This is recognised by the social partners who have signalled their intention of increasing their contribution. 36. The debate in Norway acknowledges that individual adults are responsible for developing their own competence and that they must themselves be prepared to contribute time and money to their own competence development. 37. Questions related to taxes paid by enterprises and individuals are also included in the debate. 38. A central element in the debate is that the benefits of investment in education and training can be increased by improved co-ordination of the public measures, better and more flexible organisation of education and training and a better system for the documentation of non-formal learning. 1.3 SOCIAL AND CULTURAL CONTEXT Norway is a relatively homogenous society. Considerations of equality and equal opportunities are emphasised in public debate. 40. The development of adult education and training in Norway is closely linked to the growth of broad popular movements. Information activities, lectures, courses and more formal training were the principal tools in the fight for social equality and for the participation in democracy of broad groups of people. 41. This wide popular basis for and organisation of adult education is still strong today. Considerations of personal development and individual progress and of democratic participation in the development of society are thus central in the approach to lifelong learning. 42. The Norwegian working community is regulated by agreements between equal partners. An increased emphasis on competence needs in the workplace will thus not necessarily lead to a change in the focus on these considerations. 43. The authorities stress that everyone should have the opportunity of obtaining basic education and training as a basis for work and further learning The public debate in Norway clearly acknowledges that the competence needs in the workplace cannot be met solely by recruiting newly-educated people. It is thus necessary to concentrate on further improving the qualifications of those already working. The social partners are thus committing themselves ever more strongly to the further education and training of the labour force. 45. A certain portion of the adult population has never completed initial education and training. Some 40 per cent of the labour force have not completed upper secondary education and training in line with the requirements of the new curricula introduced with Reform Norway has a small but growing share of the population with immigrant background. Many immigrants find it more difficult than others to integrate into the workplace and society. 9

10 47. The active labour market policy (see section 1.1) has ambitious goals of integrating people with physical and mental handicaps into the workplace and society. Training and other methods of improving the qualifications of these groups will be a central task for the labour market authorities A more comprehensive and co-ordinated system of providing education stands out as a major challenge in a reform of adult education. 49. A much improved and more formalised co-operation and interaction between the education institutions and enterprises in mapping needs and developing and implementing training is a main demand of the social partners. 50. Such co-operation is, to a certain degree, based on laws and regulations in various fields e.g: Public support is provided to private and independent organisations and institutions providing education and training and which are approved under the law. Many labour market training courses takes place under approved curricula and with the possibility of taking an official examination. The external candidate system ensures that participants in all types of education and training institutions are given the opportunity to test their knowledge at the same level as ordinary pupils and students. It is becoming more common for public and private education institutions to co-operate directly with enterprises and other local institutions to develop and provide training and even to help in competence development in other fields. 10

11 CHAPTER 2: ESTIMATING THE PUBLIC COSTS OF IMPLEMENTING LIFELONG LEARNING The Ministry of Education, Research and Church affairs National Education Offices Municipalities Counties Primary and Lower secondary Schools Adult Education Upper Schools Secondary Universities University Colleges / State Colleges Figure 1: Administration of education. Organisational model 2.0 THE NORWEGIAN EDUCATION SYSTEM 51. The legislative and financial control as well as the overall responsibility for education lies with The Storting (National Assembly). The Ministry of Education, Research and Church Affairs has the overall responsibility for all levels of education from primary and secondary to higher education, including adult education. The Ministry of Public Administration and Labour has the financial responsibility for labour market training. 52. Norway is divided into 19 counties, or regional administrative units, and 435 municipalities. The municipalities are responsible for running the primary and lower secondary schools. This includes responsibilities for the building and maintenance of schools, for appointing teachers and for most of the financing. At the upper secondary level, the 19 counties assume these responsibilities. The Ministry of Education, Research and Church Affairs is responsible for the individual institutions in both the university and the non-university sectors. 11

12 53. A characteristic feature of the formal education system has always been the dominating position of the public authorities and institutions. Compared with other countries, Norway has few private schools and no specific private school tradition. Private schools are primarily considered as supplementary and are not supposed to compete with public instruction. Private higher education institutions (19) may receive state funding only for recognised study programmes. 54. Norway has a scattered population and there are many small school units in remote and sparsely populated areas. This partly explains the low average class size and the teacher-pupil ratio. 55. In adult education, the picture is somewhat more complicated. 56. The Act concerning Adult Education regulates responsibility, organisation and the conditions for public grants. 57. The public education institutions are also responsible for adult education and continuing education. The reforms in initial education and training are also important reforms for adult education. 58. The Norwegian education system is decentralised, which implies that it is accessible and that competence is widely distributed throughout the country. The possibilities for adults to develop their potential will be further enhanced. This is the main strategy for the reform plans in adult education. 59. In recent years, public institutions in upper secondary and higher education have been allowed to offer courses on a commercial basis. This activity is expanding. It adds resources to the public funding of education and is intended to stimulate co-operation between education and business. 60. There is a long tradition in Norway of non-governmental organisations and institutions playing a role in adult education, partly as a supplement to the public institutions. To some extent, these NGOs have public funding but mostly they depend on the participants or employers paying for the education. 61. As an example, the study associations annually have 750,000 participants attending their courses. This is approximately one quarter of the adult population in Norway. The folk high schools and the distance education institutions are also important actors in adult education in Norway. This broad public commitment to adult education is important, both to motivate adults and to recruit them to further education. 62. The social partners and the working community make a major contribution to the development and implementation of education in Norway. The social partners have shown strong interest in a reform of adult education. 63. In the basic agreement between the social partners, it is stated that each enterprise must present its objectives for future development as a basis for charting competence needs. The enterprise, in cooperation with the employees, is responsible for charting and initiating possible measures. 64. The costs of supplementary and further education corresponding to the needs of the enterprise must be paid by the enterprise. 65. In the wage negotiations since 1996competence and training have been central issues. 66. The trade certificate plays an important role in Norway, both in the workplace and in the training system. Skilled workers are in a strong position in the labour market; there is very low unemployment among them. Teachers of technical subjects must themselves have a trade certificate and practical experience in the field. 12

13 67. The number of skilled workers with a trade certificate will grow considerably in the years to come. New trades have been defined under the law and an increasing number of young people finish their upper secondary education with a trade certificate. 68. Section 20 of the Act concerning Vocational Training allows adults who wish to obtain a trade certificate to obtain formal recognition of professional knowledge and skills acquired over time in the context of a job. The section 20 measure is not a training measure but a documentation measure. Candidates do not need to go through a formal education and training process, but must have relevant professional experience that has lasted at least 25 per cent longer than the apprenticeship period for the trade, that is to say, normally 5 years. They must take the same practical trade examination as the one taken by the apprentices and in additional pass an examination in the theory of the trade. The number of trade and journeyman s certificates obtained for section 20 candidates account for about 40 per cent of all the obtained trade or journeyman s certificates each year. 69. The structure of upper secondary education has facilitated the documentation of qualifications as new trades are being defined under the Act and as enterprises see the need for skilled workers both in the production process and as supervisors for new apprentices. 70. The Core Curriculum states the goals and principles for primary education, general and vocational secondary education and adult education while providing a common basis for curriculum development within all of these education sectors. The common Core Curriculum for all of these sectors, including adult education, underlines how the different education sectors are linked by common goals. 71. The provision of child-care services is the responsibility of the municipalities. A large part of the overall service is provided by private organisations under municipal supervision. 72. From 1997, children start their compulsory education during the year they reach the age of 6. This extends the period of compulsory education from 9 to 10 years. Child-care services are not formally part of the educational system, and are not discussed as a central part of lifelong learning in Norway. 73. Pupils normally start upper secondary education at the age of 16. Upper secondary education lead to either university entrance qualifications (after 3 years), a trade or journeyman s certificate (after 4 years) or other vocational competence (after 3 years). Regional authorities are responsible for upper secondary education and are required by law to offer places substantially in excess of the needs of the age group, 375 per cent of the average age cohort (i.e. 3 cohorts), in order to provide adults with the opportunity of receiving an upper secondary education. 74. A large-scale reform of upper secondary education was implemented from The reform introduced a statutory right (but no obligation) to three years of upper secondary education for all between the ages of 16 and 19. Foundation courses (the first year of upper secondary education) have been coordinated and their number has been reduced from 109 to 13. They now provide a broad knowledge base for specialisation and lifelong learning. For trades recognised under the Act concerning Vocational Training, the model proposed will combine two years in school with subsequent training in industry. 75. The structure of higher education was, until the early 1990s, characterised by a high degree of decentralisation. The non-university sector was reorganised in 1994, a process through which 98 (regional) colleges were merged into 26 new (state) ones. The reorganisation took place during a period of increased interest in and demand for higher education - thus creating challenges, both quantitatively and qualitatively. The student population increased by about 60 per cent, from around 100,000 to more than 170,000 students, between the late 1980s and the mid-1990s. 13

14 76. Decentralisation of decision-making has been a general trend in Norwegian education since the late 1980s. A major step in the direction of decentralisation was made by the introduction of a new sector grant system in The former earmarking of grants for primary and secondary education from central government to municipal/county authorities was replaced by a system in which the authorities receive a lump sum covering all central government subsidies for school education, culture and the health services. As a consequence, the municipalities and county municipalities now enjoy greater autonomy in the provision of education within the limits of centrally decided standards. 77. The institutions of higher education are awarded a framework budget within which they have a considerable amount of freedom concerning internal allocations and expenditures, as long as the set goals (the expected level of activity) are achieved. 2.1 CURRENT ENROLMENT PATTERNS Foundation learning i) Age participation rates for upper secondary education Figure 2 Age participation rates for upper secondary education, 1997 Total Student numbers Percentage of each age group Note: The table refers to the situation on Source: Statistics Norway. 78. The table includes all education and training covered by the Act concerning Upper Secondary Education and includes students at public and private upper secondary schools as well as apprentices. 79. The numbers do not include upper secondary education and training managed by the labour market authorities. The provision of upper secondary education and training by the study associations, the independent distance education institutions etc. which is not fully-funded by the government is similarly not included. The number of adults receiving upper secondary education and training is thus much higher than that presented in the table. ii) Changes that might be anticipated 80. Approximately 40 per cent of the labour force have not completed upper secondary education and training at the level required for today s young people. An increasing demand of formal qualifications in the labour market, may imply that more adults than before will need, and want, to complete upper secondary education and training. This applies to qualifications for admission to higher education as well as to occupational qualifications. 81. To achieve this requires greater flexibility and a better management of education provision. 14

15 82. The social partners and the authorities are working to ensure a continued increase in the number of apprenticeship places in the working community. There is every indication that the interest of young people in completing upper secondary education with a trade certificate, and the opportunity for so doing, will continue to increase, given the demand in the labour market. There is currently a dramatic increase in the number of adults employees taking a trade certificate as external students Higher education Age distribution in higher education Figure 3 Net enrolment in higher education by age group, 1996 Total Figure 4 Total age distribution in higher education Total What, if any, changes are expected to take place in the demand for and provision of higher education over the next decade? 83. As demand for higher education now seems to be flattening out, at a high level, among young people, more attention will be given to continuing and further education for the workforce. 84. The ministry will present its assessments in a white paper this spring. 85. Another white paper on student demand for and the number of students in certain studies will also be presented to parliament this spring. 86. The final report will further elaborate these questions on the basis of the white papers Adult education 87. Section 2.0 provides an overview of the adult education system in Norway. Apart from the proposed tripartite division, important aspects of education and training were not considered. These will be dealt with here. 15

16 88. The data for adult education are not as comprehensive as they could be but better collection methods are being developed. Norway is a participant in the Second International Adult Literacy Survey (SIALS). This will allow a much better and more accurate estimation of the basic education and training needs of the adult population than is currently possible with the existing education statistics. i) Adult population by educational attainment and/or literacy level Figure 5 Adults with a low level of educational attainment by age and by labour force status, 1997 Age Number Per cent of total population Population with less than ISCED 3 or low literacy In the labour force Number Of which employed (per cent) Of which: unemployed (per cent) Not in the labour force Number years years years years years years Source: Statistics Norway. ii) Information about the participation of poorly-qualified adults in various adult learning programmes, by labour force status Figure 6 Basic language teaching (Norwegian) for immigrants, 1996 Age Population with less than ISCED 3 or low literacy In the labour force Number (per cent of total population) Total (100) years (20.5) years (55.7) years (18.6) years 655 (4.8) 71 and over 51 (0.4) Total (per cent) Employed (per cent) Unemp`d (per cent) Unemp`d >l year (per cent) Note: Of the total of 13,598 participants, 1,119 (8%) took part in literacy classes. There is no information available concerning labour market status. Source: Ministry of Education, Research and Church Affairs. Not in the labour force Number (per cent) 16

17 89. These courses are the responsibility of the municipalities and are offered to all non-norwegianspeaking residents. Until 1998, there was a limit of 500 teaching hours (or 750 hours for the non-literate). From 1998, the system has been changed so that each person should have the teaching necessary to reach a certain level of achievement. Figure 7 Adult Education organised by The Study Associations Participants Total Of which years woman Total % Total % years Age 50 years Unknown Language Aesthetic, art and craft Humanities, religion and theology Social science and law Administration Economics and data processing Health and social studies Transport and communication Natural science, industry and technology Agriculture, fishing and forestry, ecology and environment Provision and services Unknown Source: SSB Figure 8 Adult Education. Distance Education Institutions Total participants*) Upper secondary education University courses Other courses *) estimated to full time students 17

18 Figure 9 Adult Education. Students in Folk high schools Participants Total participants Participants full 11 time students 309 Participants 22 short courses*) 416 *) 3days 16.5 weeks iii) Labour Market Training and training for the vocationally disabled 90. The labour market authorities have the responsibility for the Labour market training (LMT). LMT is seen as a supplement to the initial and adult education offered by the education authorities at the municipal levels. 91. The objective of the programme is to increase the chances for transition to ordinary working life, reduce labour market imbalances caused by lacking skills, prevent unemployment and motivate unemployed to pursue further education. The programme is seen as an important tool for aiding work placement. 92. The target group is first and foremost unemployed with the aim of effective placement. However, persons whose jobs are in jeopardy and the vocationally disabled are also part of the target group. Participants should be 19 years of age or older, with the exception of the vocationally disabled who may be below this age. 93. The types of courses are decided and paid for by the Public Employment Service (PES) at the regional and local level. Main course suppliers are upper secondary schools, regional resource centres, and the voluntary study organisations. 94. The labour market authorities choose the organisers on the basis of tenders. This means that a wide range of public and private providers of education are now active in this market. 95. The content of the courses is primarily vocational training. However, general education at secondary or upper secondary level is also given if this is considered necessary for the unemployed to take advantage of vocational training at upper secondary level. The types of courses vary with the local labour market situation and with the economic conjunctures. In times of low unemployment and labour shortage, like the current situation, there will be a focus on short vocational courses aimed directly towards specific parts of the job market. During periods with higher unemployment, and with lower and less specific demand for labour, the PES may provide somewhat longer courses, and also courses with a more general content, e.g. upgrading of primary and lower secondary skills. 96. All participants are remunerated with a daily cash benefit, the size of which varies with eligibility. 18

19 Figure 10 Participants, including vocationally disabled, in labour market training by age, Mean Total/Age Figure 11 Vocationally disabled in education Mean Type of scheme/ Ordinary Labour market Other schemes and Total education training/training statuses place 53, Source: The Directorate of Labour Job seekers with physical, mental and social handicaps which influence their job opportunities are registered as vocationally disabled job seekers at the PES. Vocationally disabled persons who have a statutory right to vocational rehabilitation may participate in ordinary labour market programmes, labour market programmes for disabled persons, and vocational rehabilitation measures. A number take part in ordinary education, as shown above. 2.2 ESTIMATES OF PARTICIPATION GAPS Foundation learning 98. The Norwegian system of upper secondary education is described in Section The aim is that all young people shall complete upper secondary education and training with qualifications leading to either university entrance qualifications, a trade or journeyman s certificate or other vocational qualifications Each young person aged has å statutory right to three years of upper secondary education. Normally, this right has to be exercised over a period of four years, that is before the pupil reaches the age of 20. There is also a right to adapted education (after assessment by an expert) and, if necessary, a right to an extended period of five years to complete the education. Young people who genuinely are unable to obtain the formal final qualifications may obtain documentation of their partial qualifications. For young people who either do not seek or drop out of the standard upper secondary schooling, a statutory follow-up service has been established Statistics from the school year show that 85% of 18 year-olds are pupils at upper secondary schools or have apprenticeship contracts in the working community. For 16 and 17 year-olds, the proportion is 93% A very tight labour market may be the reason why more 18 year-olds now decide to drop out of or postpone upper secondary education. The scarcity of apprenticeship places within certain trades may also help to explain the lower participation rates of 18 year-olds. Around 1 per cent of the cohort of 16 to 19

20 18 year-olds attends folk high schools (folkehøgskole). Experience shows that these young people will return to upper secondary education the following year The experience gained during the reform of upper secondary education and training (including the results of a broad research-based evaluation of Reform 94) will be discussed and summarised in a Government White Paper in spring Greater flexibility in the provision of education and training, opportunities for alternative education and better methods for documenting partial qualifications are among the measures being evaluated as an encouragement for a greater proportion of young people to complete their upper secondary education within the period they are entitled to pursue such education and training Upper secondary education for adults will be discussed in Section Higher education 105. The higher education system in Norway is briefly described in Section The aim is that around 50% of young people continue in higher education having completed upper secondary education and training There has been a large increase in the number of study places in the last ten years, from under to The government estimates that the number of study places is sufficient to meet the overall need The challenges are to adjust the supply to meet changing needs, to develop an improved flow through the system and to build a more flexible organisation In spring 1998, the government presented a white paper on the scope of the different types of higher education provided and a broadly-based committee has been set up to make proposals to meet future challenges in higher education Adult education 111. As stated in Section 2.0, the education system for adults in Norway is much less uniform than that for the younger age groups. The ambitions and the participation structure are summarised here. Labour market training 112. The labour market policies adopted depend mainly on the state of the economy. With the current tight labour market, the main emphasis is being placed on advice, guidance, and job placements Within the labour market programmes on-the-job training and shorter vocational courses are given priority as a means of enhancing the matching of individuals to the available jobs For special groups with a weak position in the labour market (long term unemployed, immigrants, the vocationally disabled, single parents etc.), longer periods of training may be provided if deemed necessary for job placement. 20

21 115. In 1994 the mean number of participants in labour market programmes for the ordinary unemployed was against the mean number of registered unemployed of In 1997 with a tight labour market the mean number of participants in ordinary labour market programmes was against the mean number of registered unemployed of Basic language training 116. The system of teaching the Norwegian language to non-norwegian-speaking adults is under review The aim is that everyone in this group should be provided with training in Norwegian up to the level where they are able to obtain work or participate in upper secondary education. The amount of training provided depends to a great degree on the ability of the individual. The illiterate may receive basic language training spread over several years The situation prior to the review is that the municipalities are obliged to provide training in the Norwegian language. Participation has been good in such training. The capacity is there to meet the increase in demand and scope that will result from any agreed change. Primary and secondary education for adults 119. The proportion of adults who have not formally completed primary and lower secondary school is low. Nevertheless, the number of adults who in reality do not have these basic qualifications is probably much higher than has previously been thought Primary and lower secondary education for adults, which is the responsibility of the municipalities, is provided for fewer than adults each year. The government has now proposed that the duty of the municipalities to offer such education to adults who do not have formal primary and lower secondary education should be further developed The number of adults who have not completed upper secondary education is almost one million (some 40% of the labour force). The number of adults receiving publicly-financed upper secondary education has gone down considerably in recent years, while the number of adults taking the trade certificate has increased significantly (from around in 1995 to almost today). There is also an increase in the number of adults who themselves pay for most of their upper secondary education through the study associations (studieforbund) or different private providers. Job-related training 122. The provision of continuing education and training for employees, which is related to the needs of enterprises, is primarily the responsibility of the employers There is scant statistical information, see Section 2.1. As part of the wage negotiations, the social partners have prepared the ground for a significant increase in the emphasis on continuing education and training for employees The Ministry shares the view of the social partners concerning the need for increased emphasis on continuing education and training in the working community. In the white paper "The Competence Reform", the government puts forward a range of proposals from the authorities designed to support such an emphasis on competence development in the working community. This includes the better management 21

22 of the supply of education and training to meet the needs of the working community, the use of information technology and distance education, and the documentation of the real competencies of adults, etc Outside of the existing division of the work, it would not be appropriate for the authorities to set goals for the working community s contribution to the continuing education and training of the labour force. 2.3 ESTIMATES OF THE COSTS OF CLOSING THE PARTICIPATION GAP Foundation learning 126. Among 16 to 18 year-olds, there is a high participation rate in upper secondary education. The responsibility for providing school places according to the rights of the individual lies with the counties. The provision of apprenticeship places is the joint responsibility of the authorities and the working community The counties receive the means for this through the sector grants system according to the number of 16 to 19 year-olds in each county and, in addition, are required to provide an extra number of places corresponding to 75% of the cohort of 16 year-olds to cover special training, pupils who change courses and adult education. The grants to the training enterprises are also distributed through the county Higher education 128. The Ministry considers the overall number of student places to be sufficient to allow the participation goal to be reached The Ministry is working on measures to improve the flow of students through the system and to change the supply according to need. The financing of studies is also part of this debate There is currently no reason to suppose that there is a need for increased funds to carry out the changes concerning increased efficiency Adult education Labour market training 131. Given the labour market situation, it is not current policy to increase the extent of labour market training and the funds allocated to it. Basic language training 132. Training in the Norwegian language for non-norwegian speaking adults has recently been reorganised into a more level-based system. As an example, examination results will decide the need for and the extent of the training Funds for this purpose are increased by NOK 60 million for It will not be possible to give more accurate information on the level of demand before the system has been in operation for some time. There is a clear recognition at the political level that a good knowledge of Norwegian is a requirement for 22

23 obtaining employment and integrating into society. Thus there is broad political support for this kind of training and it is accepted that more resources will be needed as a result of the new system. Primary and secondary education for adults 134. The examination-focused provision of adult education at primary and lower secondary level is rather limited in Norway. In the white paper "The Competence Reform", the government proposes an extended project in some counties to assess more accurately the need for such training and models for the organisation of the training Many adults need and wish to complete upper secondary education. In the white paper "The Competence Reform", the government proposes a greater emphasis on upper secondary education for adults over a ten-year period. It is proposed that the counties have a legal obligation to provide upper secondary education to adults who did not receive such education previously. Some 265,000 adults are deemed to be in this position. Funding will primarily come through annual allocations the counties already receive for the number of study places they are required to have. Needs in excess of this will be dealt with by the government in the annual budget. Job-related training 136. It is not currently possible to estimate accurately the costs to the working community of the increased emphasis on continuing education and training. The greatest cost will relate to the granting of leave for training purposes. The development of methods and training that allow the combination of learning and work will probably be decisive for the extent of the training provided. Here, the authorities will mainly help by contributing funds to the development work underlying such a development. 2.4 NON-PUBLIC COSTS Figure 12 Other direct and indirect private costs of lifelong learning Sectors Direct private costs (tuition, course development fees) Indirect private costs (e.g. foregone earnings, foregone production) Other indirect private costs (associated costs e.g. transportation, child care, etc.) Foundation NO NO Books Higher NO Public loans/grants Adult (poorly qualified) Basic literacy NO NO Retraining for unempl. NO NO Job-related training NO Other adults (YES) (YES) (YES) 23

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